Monetary Statistics for September 1999

According to statistics published today (29 October 1999) by the Hong Kong Monetary Authority, total deposits increased while total loans and advances decreased during the month of September. Table 1 provides a summary and comparison with earlier months.

Deposits

Total deposits rose by 1.3% in September. The share of Hong Kong dollar deposits in total deposits remained unchanged at 55.3%.

Hong Kong dollar deposits increased by 1.4% during the month. Among different categories, demand deposits recorded the largest increase, of 2.2%, followed by time deposits (1.6%) and savings deposits (0.6%).

Foreign currency deposits grew by 1.3%. The growth was mainly attributable to an increase in non-US dollar foreign currency deposits (by 3.4%). US dollar deposits declined slightly by 0.2%. Valuation effects accounted for part of the increase in non-US dollar foreign currency deposits.

Loans and advances

Total loans and advances contracted by 0.7% in September, after a decline of 0.5% in the preceding month. Domestic loans continued to decline, by 0.3% in September. This decline, however, was more moderate when compared with the average monthly decline of 0.9% in the first eight months of the year. As Hong Kong dollar deposits increased while Hong Kong dollar loans declined, the Hong Kong dollar loan-to-deposit ratio decreased from 95.5% at end-August to 94.1% at end-September.

Quarterly analysis of loans for use in Hong Kong by major economic sectors

Analysed by economic use, the decline in loans to most economic sectors also moderated on a quarter-on-quarter basis, in part reflecting a rebound in economic activity. Loans for residential mortgage and financial concerns recorded increases, of 0.4% and 0.5% respectively during the September quarter. Loans to the manufacturing sector and loans for trade financing contracted by 4.2% and 4.4% respectively. Loans for wholesale and retail trade dropped by 3.3% during the September quarter, while loans for building, construction, and property development and investment declined slightly by 0.3%.

Money supply

Hong Kong dollar M1 grew by 2.1% in September, as demand deposits and currency held by the public increased by 2.2% and 2.0% respectively. Meanwhile, both Hong Kong dollar M2 and Hong Kong dollar M3 increased by 1.3%. In the twelve months to September, Hong Kong dollar M1 grew by 10.5%, while both Hong Kong dollar M2 and Hong Kong dollar M3 increased by 4.8%.

Note to editors

For enquiries, please contact the Press Section, Hong Kong Monetary Authority. (Telephone: 2878 8261)

Hong Kong Monetary Authority

29 October 1999

Attachment

Release Schedule of Monetary Statistics in Hong Kong

The monthly release schedule of monetary statistics in Year 2000 is as follows.